The Gulf Cooperation Council (GCC) is witnessing a surge in its real estate sector, with a staggering $1.68 trillion worth of projects currently planned or under construction – a significant jump from $1.38 trillion in 2023, according to a new report by CBRE Group.
Government Initiatives Fueling Growth:
- The report attributes this growth to successful government initiatives and strategies implemented by GCC countries, attracting both local and international investors.
UAE and Saudi Arabia Lead the Charge:
- The United Arab Emirates (UAE) and Saudi Arabia are at the forefront of this real estate boom. Investment and business-friendly policies implemented by these countries have driven up real estate occupancy and demand across various property types.
Infrastructure Development Boosts Activity:
- GCC countries’ continuous infrastructure development, supporting economic diversification efforts, is another major factor contributing to the real estate upswing.
Project Breakdown by Country:
- Saudi Arabia takes the lead with a whopping 63.1% share, boasting $1.06 trillion worth of projects in the pipeline.
- The UAE follows closely with $409 billion, representing 24.4% of the total project value.
- Oman, Kuwait, Qatar, and Bahrain hold the remaining shares.
Positive Outlook for the Future:
- CBRE Group anticipates the GCC real estate sector’s upward trend to continue, contributing significantly to economic growth.
- The report highlights a potential rise in market performance fueled by high demand and limited supply.
- The non-oil sector in the GCC is projected to experience a robust growth rate of 2.9%.
Looking Ahead:
- The UAE’s real estate market is expected to maintain its momentum, backed by government initiatives fostering diverse and innovative development projects. Growth is anticipated in both Abu Dhabi and Dubai, particularly within the luxury segment.
- Saudi Arabia’s focus on leisure initiatives is predicted to diversify demand and boost weekend property rentals.
- CBRE Group also expects an increase in occupancy rates for budget-friendly properties in Bahrain.
This surge in the GCC’s real estate sector signifies a period of significant economic activity and presents exciting opportunities for investors across the region.
